Jamie Dimon On Inflation, Regulations, Credit Crunch And More: What The Veteran Banker Said During JPMorgan Earnings Call

JPMorgan Chase & Co JPM CEO Jamie Dimon believes although inflation may cool off a bit, it could be stickier than people's expectations.

Speaking about price rises on the earnings call following the bank's first-quarter results announcement, Dimon pointed out that the short-term indications signal lower inflation and a risk of recession.

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"We don't know what the rate curve is going to be in the year. And so, we're quite cautious in that, and quite thoughtful about that. Obviously, the short-term read is a higher recessionary risk, but … and then inflation coming down. So I think inflation will come down a little bit. It could easily be stickier than people think, and therefore, the rate curve will have to go up a little bit," he said, according to the earnings call transcript published on Seeking Alpha.

Shares of the bank jumped over 7% on Friday after it reported a 25% jump in Q1 net revenue (managed) of $39.34 billion, beating the consensus of $36.2 billion.

Credit Crunch: The veteran banker also said he doesn't believe there would be a credit crunch but expects a little bit of tightening in lending, especially in the real estate sector.

"Obviously, there's going to be a little bit of tightening. And most of that will be around certain real estate things. You've heard it from real estate investors already. So I just look at that as a kind of a thumb on the scale. It just makes the finance conditions a little bit tighter, increases the odds of a recession. That's what that is. It's not like a credit crunch," he said in his reply to an analyst.

Dimon also cautioned that people need to be prepared for the potential of higher rates for longer and advised his clients that "now" would be the right time to fix a problem if they are exposed to floating rates or refinance risks.

"I say to all of our clients, now would be the time to fix it. Do not put yourself in a position where that risk is excessive for your company, your business, your investment pools, et cetera," he said.

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